Dell Technologies, Inc. Conference Call Summary Company Overview - **Company**: Dell Technologies, Inc. (NYSE: DELL) - **Date**: March 8, 2022 - **Participants**: Yvonne McGill (CFO), Brian Alexander (Raymond James & Associates) Key Points Financial Performance - **Record FY '22**: Achieved record revenue of **$101 billion**, operating income of **$7.8 billion**, and EPS of **$6.22** [10][11] - **Cash Flow**: Generated cash flow from operations of **$7.1 billion** [10] - **Shareholder Value**: Completed VMware spin-off, simplified capital structure, and announced a **$5 billion** share buyback program along with a **$1 billion** dividend for the year [10][11] Business Segments - **Core Businesses**: Dell's core businesses, Infrastructure Solutions Group (ISG) and Client Solutions Group (CSG), operate in a combined market with a **$670 billion** Total Addressable Market (TAM) [8][9] - **Growth Opportunities**: New growth areas present an additional **$650 billion** market opportunity, expected to grow at an **8% CAGR** through 2024 [9] Supply Chain Challenges - **Supply Chain Constraints**: Ongoing semiconductor shortages and logistics challenges impacting revenue and costs [14][15] - **Freight Costs**: Significant increase in freight costs, with chartering a plane rising from **$400,000** to **$2.5 million** year-over-year [15] - **Backlog**: Record high backlog levels in ISG and storage, with expectations of semiconductor constraints continuing into fiscal '23 [16] PC Market Insights - **Market Dynamics**: The PC market reset baseline to **350 million units** in 2021, with opportunities for refresh due to **550 million PCs** over three years old [19][20] - **Focus on High-End Segments**: Dell is targeting high-end commercial PCs and gaming segments, which are historically more stable and profitable [20][21] Server and Storage Business - **Server Market Leadership**: Dell holds the 1 revenue share in mainstream servers, with a **560 basis points** increase over the last five years [24] - **Storage Growth**: The storage portfolio is the broadest in the industry, with significant growth in midrange orders and a focus on innovative products like PowerStore [27][28] VMware Relationship - **Post-Spin Strategy**: Continued collaboration with VMware, particularly in hyperconverged infrastructure, while maintaining a flexible approach to partnerships [30][31] Capital Allocation Strategy - **Shareholder Returns**: Commitment to return **40% to 60%** of adjusted free cash flow to shareholders, including dividends and share repurchases [32][33] - **Debt Management**: Plans for additional debt paydown while investing in core and new growth opportunities [33] Edge and Telecom Opportunities - **Market Potential**: Edge market estimated at **$110 billion** with a **17% CAGR**; Telecom market at **$114 billion** with a **2% CAGR** [35][36] - **Positioning**: Dell aims to modernize IT for Telecom and leverage existing relationships to expand its footprint in Edge and Telecom solutions [38] Future Outlook - **Revenue Growth Projections**: Expected revenue growth of **3% to 4%** and EPS growth of **6% or better** [40] - **Valuation Upside**: Current PE ratio below **8x**, indicating potential for valuation improvement [40] Additional Insights - **Diversity and Inclusion**: Yvonne McGill highlighted her role in promoting diversity within the company and celebrated International Women's Day [4][5] - **Long-Term Vision**: Dell's strategy focuses on sustainable growth, shareholder value creation, and capital allocation flexibility [40]

Summary of Dell Technologies Inc. Conference Call Company Overview - **Company**: Dell Technologies Inc. (NYSE: DELL) - **Event**: Morgan Stanley Technology, Media and Telecom Conference 2022 - **Date**: March 7, 2022 - **Key Representative**: Chuck Whitten - Co-CEO Core Industry Insights - **Market Position**: Dell is positioned in the data and multicloud area with leadership in several markets, including: - Number one in client revenue - Number one in x86 servers - Number one in external storage - Number one in hyperconverged infrastructure - Number one in data protection - **Market Size**: The total addressable market (TAM) for Dell's core business is approximately $670 billion, indicating significant growth potential within established markets [5][6] Strategic Framework - **Three Pillars of Strategy**: 1. **Core Business Strength**: Dell's core businesses are in large, stable, and growing markets, providing a solid foundation for growth [5] 2. **Adjacent Growth Opportunities**: Opportunities in areas like Edge computing, Telco, and APEX offerings that expand Dell's TAM [6] 3. **Shareholder Value Commitment**: A balanced capital allocation framework aimed at delivering sustained growth and shareholder returns [6] Financial Performance - **Fiscal Year 2022 Highlights**: - Revenue: $101.2 billion, up 17% year-over-year - Earnings Per Share (EPS): $6.22, up 27% - Free Cash Flow: $7.1 billion, marking a historic year for the company [7] - **CSG Business**: Generated $17.3 billion, growing 26% on a P&L basis and 21% on a demand basis, with market share gains in 32 of the last 36 quarters [8] - **ISG Business**: Returned to growth with $9.2 billion, growing 3% on a P&L basis and 17% on a demand basis in Q4 [8] Market Dynamics - **PC Market Resilience**: The commercial PC market is expected to remain stable due to its evolving usage model, with Dell focusing on high-end commercial and gaming segments [12][13] - **Infrastructure Demand**: Digital transformation and hybrid cloud adoption are driving infrastructure spending, positioning Dell favorably in the servers and storage markets [16] Supply Chain Challenges - **Component Shortages**: Ongoing semiconductor shortages and logistics issues are impacting supply chains, with expectations of challenges persisting through the first half of fiscal 2023 [21][22] - **Backlog Management**: Dell has improved backlog management but anticipates continued challenges, particularly in high-end displays and server components [20][22] Capital Allocation Strategy - **Balanced Approach**: Dell is shifting towards a more balanced capital allocation strategy, including: - Dividend of $0.33 per share announced for Q1 - $900 million of share repurchases against a $5 billion authorization [34][35] - **Debt Reduction**: Aiming to reduce core leverage ratio to 1.5 over the long term [35] Valuation and Investor Sentiment - **Current Valuation**: Dell trades at a discount compared to peers (7.5x PE vs. 9x for peers) [37] - **Investor Expectations**: Investors are looking for proof of PC market durability, consistent execution in growth areas, and adherence to capital allocation strategies [39][41] Future Outlook - **Growth Guidance**: Dell anticipates 3% to 4% revenue growth for fiscal 2023, with expectations for both CSG and ISG segments to grow [42][44] - **Long-term Investment Thesis**: Dell's core markets are stable, and the company is well-positioned for long-term growth, making it an attractive investment opportunity [46][47]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 29, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (Sta ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 29, 2021 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State or ot ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (Sta ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State o ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 1, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State or ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☑ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended January 31, 2020 or ☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-37867 Dell Technologies Inc. (Exact name of registrant as specified in its charter) Delaware 80-0890963 (State or oth ...